While Malaysia continues to experience a data center boom, industry experts suggest that the country may struggle to keep pace with surging demand. In contrast, Thailand is poised to capitalize on the growing demand for data centers, particularly driven by the rise of artificial intelligence (AI).
A recent report by Macquarie Research highlights Thailand’s potential as a data center hub. The country’s abundant power supply and supportive regulatory environment make it an attractive destination for data center operators and investors.
Additionally, significant investments from tech giants like Google in the Eastern Economic Corridor are fueling the demand for digital services, further boosting the data center market.
Contributing to the overall investment boom, recently, DAMAC Group has also announced plans to invest over 1.257 billion SGD in a series of data center projects to meet the rising demand for advanced AI technology and data processing capabilities.
Equinix also announced a significant investment of approximately $500 million in the country over the next decade. Also, GDS International announced a significant commitment to Thailand’s digital landscape, pledging up to US$1 billion over the next five years.
Macquarie’s report emphasizes the shift towards the “site to power” model, where data centers are built in locations with ample power supply rather than relying on power infrastructure to be developed in specific locations. Thailand’s robust power infrastructure positions it favorably to benefit from this trend.
In contrast, Malaysia, despite experiencing significant investments in data centers, may face capacity constraints in the near future. While the country has seen substantial growth in recent years, it may struggle to keep up with the rapidly increasing demand for data center services, particularly as AI applications continue to proliferate.
The demand for data centers to support their computational needs will continue to soar as AI-powered technologies become more prevalent. Hence, countries with ample power resources, favorable regulatory frameworks, and supportive infrastructure will be well-positioned to capitalize on this growing market.
